Canada’s prosperity highly depends on the responsible development of the nation’s abundant oil and gas resources. It is one of the largest sectors that contributes significantly to the growth of the Canadian economy, and it directly benefits Canadians from coast, to coast, to coast.

Despite its importance to the Canadian economy and future prosperity, the oil and gas industry has been facing increased scrutiny from various domestic and international groups. To expand the information available to Canadians, the House of Commons Standing Committee on Natural Resources (hereafter “the Committee”) undertook a study to examine the cross-country benefits of developing Canada’s oil and gas resources, and seek direct evidence of how the oil and gas industry contributes to the well-being of Canadians. During the course of the study, Jay Khosla, Assistant Deputy Minister at Natural Resources Canada, told the Committee that the socio-economic benefits from the oil and gas industry are universally positive.[1] Other witnesses confirmed that it supports tens of thousands of local communities and businesses across Canada, regional economies and multiple Canadian industries, such as manufacturing, construction, and steel.[2] Janet Annesley, Vice-President at the Canadian Association of Petroleum Producers, informed the Committee that the oil and gas industry creates more than 550,000 direct and indirect jobs for Canadians. Witnesses also testified that it provides governments with revenue that pays for the country’s health care, community infrastructure and education.[3]

Furthermore, the development of the oil and gas industry generates various environmental benefits, including improved air quality, water quality, and reforestation. Many of these improvements are achieved through world-class innovation and clean technologies developed and supported by the industry. The Committee also learned that Canada’s oil and gas industry is a global leader in innovation and expertise related to resource extraction, and that it enables thousands of Canadian entrepreneurs to take an idea and turn it into a business.

Throughout the study, witnesses urged the government to strongly support further development of Canada’s oil and gas resources, and agreed that timely access to new export markets is crucial for Canada’s continued growth and its ability to compete with other countries. Mr. Khosla noted that “Canada has both an opportunity and an imperative to diversify energy markets in order to continue reaping the key economic benefits that we enjoy today … [but it] needs to act quickly.”[4] Finally, the Committee heard that the federal government has modernized its regulatory system, with the aim of developing natural resources projects in a timely way, and that it is implementing a world-class safety regime to show Canadians and the world that Canada can do so, all the while maintaining the highest environmental and public safety standards.